A 2007 Institute for Corporate Productivity survey with 799 organizations found that “two-thirds of organizations with formal succession planning programs intend to change them in the coming years.” Economic conditions in 2008 may make this focus even more important.
Companies still indicate a desire to improve succession management. Participants in the Bersin and Associates study 2008 Talent Management Factbook: Trends and Analysis in Enterprise Talent Management, identified “leadership development” and “succession management” as the top two “priorities for improvement.” Yet, only 5% have the necessary programs in operation.
Some high profile disputes remind us of the potential difficulties that can arise when succession management doesn’t work as planned. Take, for example, the pending “stepping-down” of late night talk show host Jay Leno or Brett Favre formerly of the Green Bay Packers. Or consider the Financial Times story in which Sandy Weill, a former chairman and chief executive for Citigroup described the 2003 succession process for that company as flawed.
A solid succession management processes smoothes transitions. But if – as Bersin finds – only 5% have a clear program in place, then much has to be accomplished. Specifically, Bersin and Associates find that only one-fifth of study participants follow a model that they consider “either “focused” or “strategic.”
For a peek into an organization that has a focused, strategic process, listen to the Bill Kutik interview with Bill Ingham, Director of Global HR Solutions for Clorox. Not only does Clorox consider all employees -- right down to the entry level -- when planning for the future, the company also has full board member involvement in the succession management process. Clorox has also identified four specific criteria which are used to assess leadership traits and have a long-established leadership development program running under the Clorox Diamond Leadership Institute.
Other experts emphasize the importance of an integrated succession management process. For example, Cindy Marsh, Ph.D, L.P, writes that “a good succession management plan is woven into an overall HR system that values continuous talent assessment and development programs.” She also points to the importance of a plan that reflects “overall business objectives and projected challenges.” Similarly, the Bersin report recommends integrated, focused, progressive programs that are “aligned with the business strategy.”
References:
Bersin, Josh. “Talent Management: State of the Industry.” Human Resource Executive Online [www.hreonline.com]. June 2, 2008.
Dunn, Kris. “Brett Favre – Now Wrecking a Succession Plan Near You…” fistful of talent [www.fistfuloftalent.com]. July 21, 2008
Dunn, Kris. “Jay Leno and Mixed Up Succession Planning –When Do You Kick The Old Guy (Who’s #1) Out?” fistful of talent [www.fistfuloftalent.com]. July 28, 2008.
Guerrera, Francesco. “Citi’s Weill admits flaw in 2003 succession.” Financial Times.com [www.ft.com]. May 22, 2008.
Institute for Corporate Productivity. “Big Changes Ahead For Succession Management.” Institute for Corporate Productivity [www.i4cp.com]. March 7, 2007.
Kutik, Bill. The Bill Kutik Radio Show #10 with Bill Ingham, Director, Global HR Solutions Clorox. The Bill Kutik Radio Show, July 23, 2008.
Marsh, Cindy. “Succession Planning.” Talent Management, June 2008.
